SME Working Capital

A Business / SME / Working-Capital Loan in Nepal is credit extended by banks, development banks, and finance companies to registered firms, partnerships, and companies to fund day-to-day operations (working capital) or business expansion (term/CAPEX loans). Working capital is typically a revolving facility (overdraft, cash credit, demand loan, or short-term loan) renewed yearly against inventory and receivables, while term loans fund fixed assets over a longer tenure. It is aimed at proprietorships, partnerships, private limited companies, and SMEs that have been registered and operating (commonly 6 months to 1-2 years), and it is almost always secured by collateral (typically land/building) plus hypothecation of stock and receivables. Loans are processed under Nepal Rastra Bank (NRB) Unified Directives, with a mandatory CIB credit check and KYC compliance.